Welcome to the MarketReader Minute.

Below are AI-generated insights on today’s premarket moves, powered by MarketReader technology.

If you find the insights useful, you may subscribe to our new sector-specific newsletters or share this on Twitter.

Thursday, October 10

Some of the largest macro moves in the market today include: Oil (WTI) +1.4%. Gold +0.6%. Some of the largest moves among US mega-cap stocks include: Amazon.com Inc (AMZN) +1.4%. 

The US core consumer price inflation rate unexpectedly rose to 3.3% in September, surpassing market expectations of remaining at 3.2%. This increase was driven by higher costs for services excluding energy and significant rises in shelter and transportation services prices.

In the labor market, initial jobless claims surged to a new 14-month high with an increase of 33,000 claimants from the previous week totaling 258,000 against forecasts of only reaching up to around 230,000. The rise highlights ongoing weaknesses within the labor sector (although hurricane effects also in play) which could influence Federal Reserve policy decisions regarding potential interest rate cuts later this year.

Global equity indices are experiencing notable declines; Japan's Nikkei Index fell over one percent while major European indices like France’s CAC40 also saw substantial drops alongside key American indexes such as Nasdaq falling significantly during trading sessions today amidst these economic developments impacting investor sentiment globally.

iShares Russell 2000 ETF (IWM) [-0.8%]
The iShares Russell 2000 ETF (IWM) has experienced a decline of 0.8% in pre-market trading on Thursday. Conversations on social media have highlighted recent fluctuations, noting a previous increase of 0.26% on October 9, 2024, amid broader positive movements in major indices. Notably, E2open Parent Holdings Inc. (ETWO) has seen a significant drop in share price following disappointing revenue results and a lowered fiscal outlook, contributing to the ETF's performance. Additionally, key U.S. inflation data released recently showed an annual inflation rate slightly above expectations, while initial jobless claims surged to a 14-month high, signaling potential implications for Federal Reserve interest rate decisions. The Dow Jones Index has also declined, reflecting broader market sentiment that may influence small-cap stocks represented by IWM.

United States Oil Fund LP (USO) [+0.9%]
United States Oil Fund LP (USO) has seen a price increase in the pre-market session, coinciding with a rise in crude oil prices. Brent crude has risen by 0.9% to $77.28 per barrel, while West Texas Intermediate crude surged by 1% to $73.98 per barrel. The increase in prices is attributed to heightened demand for gasoline in Florida due to Hurricane Milton, which has resulted in fuel shortages at several stations. Concurrently, ongoing tensions between Israel and Iran have raised supply concerns in the Middle East. Hedge funds are reportedly increasing their positions on rising oil prices amid these geopolitical tensions, further supporting market dynamics. Despite these factors, the U.S. Energy Information Administration has downgraded its demand forecast for 2025, citing weakening economic activity in China and North America.

TD | -4.5% | -4.8B
Toronto-Dominion Bank | Diversified Banks
Toronto-Dominion Bank is expected to pay approximately 3 billion in penalties and accept limitations on its growth in the United States due to a settlement concerning failures to monitor money laundering activities linked to drug cartels. This settlement, reported by the Wall Street Journal, may involve an asset cap imposed by the Office of the Comptroller of the Currency, restricting the bank's U.S. expansion. The Justice Department will receive a significant portion of the penalties. In premarket trading, TD's shares have dropped significantly, reflecting this development. As of this morning, TD's stock price is reported at 62.76, a decline attributed to the anticipated penalties and restrictions. Additionally, it has been noted that 2.6 billion has already been reserved for these penalties, similar to an asset cap previously imposed on Wells Fargo since 2018.

DAL | -3.0% | -970.4M
Delta Air Lines Inc | Passenger Airlines
Delta Air Lines Inc reported its third-quarter earnings, revealing an adjusted EPS of 1.50, falling short of analysts' expectations of 1.52 and down significantly from 2.03 a year ago. The airline generated revenue of 15.68 billion, surpassing the consensus estimate of 14.67 billion. However, results were adversely affected by a CrowdStrike outage, which resulted in an estimated revenue loss of approximately 380 million and reduced EPS by about 0.45. Looking ahead, Delta projects fourth-quarter revenue growth between 2-4% and an adjusted EPS range of 1.60 to 1.85, compared to the consensus estimate of 1.71. The company faces potential short-term travel spending impacts due to the upcoming U.S. presidential election. Following the earnings report, Delta's stock was noted to be down 3.10%, trading at 50.83.

UAL |-2.7%|-505.7M
United Airlines Holdings Inc | Passenger Airlines
United Airlines Holdings Inc has announced its largest international expansion in history, set to begin in May 2025. This expansion includes service to eight new cities and five nonstop flights from Newark/New York to destinations currently not served by any other U.S. airline. Concurrently, United's stock has dropped significantly since Wednesday, with pre-market trading reflecting a broader decline in U.S. airline stocks following Delta Air Lines' recent results. Additionally, the airline is expected to report its Q3 FY2024 earnings on October 15, 2024, with revised estimates of $3.07 EPS and $14.8 billion in revenue. Macroeconomic factors, including an unexpected rise in inflation and initial jobless claims hitting a 14-month high, have also contributed to market volatility affecting United Airlines. The Russell 2000 Index has declined, further correlating with the movement in United's stock.

TXG | -27.2% | -494.0M
10X Genomics Inc | Life Sciences Tools & Services
10X Genomics Inc reported preliminary Q3 revenue of approximately $151.7 million, falling short of analysts' expectations and marking a year-over-year decline. Instrument sales experienced a substantial decrease, dropping significantly to about $19.1 million, while consumables revenue increased. Services revenue also saw robust growth. Revenue from the Americas region declined, contrasting with increases in both EMEA and APAC regions. CEO Serge Saxonov noted that recent changes to commercial processes disrupted operations more than anticipated, affecting instrument sales due to cautious customer spending. Following this announcement, shares of 10X Genomics dropped significantly in after-hours trading, leading to a new 52-week low. The company plans to provide full-year guidance during its upcoming earnings call scheduled for October 29, 2024. Cash and cash equivalents stood at approximately $398 million as of September 30, 2024.

PFE | -1.4%| -2.4B
Pfizer Inc | Pharmaceuticals
Pfizer Inc has experienced a price decline of 1.4% since Wednesday. Former CEO Ian Read and ex-CFO Frank D’Amelio have publicly distanced themselves from the activist campaign led by Starboard Value, reaffirming their support for current CEO Albert Bourla and the board's efforts to enhance shareholder value. This announcement coincided with Starboard's Jeff Smith preparing to meet with Bourla. Additionally, Pfizer reported positive topline results from the TALAPRO-2 study, showing that TALZENNA in combination with XTANDI significantly improves overall survival in patients with metastatic castration-resistant prostate cancer compared to XTANDI alone. These findings are set to be submitted for regulatory consideration to potentially update TALZENNA’s approved label.

Thank you for spending a minute with us. 

If you have 2 more minutes, watch this demo of the MarketReader Platform: